Helmerich & Payne Q3 Earnings and Revenues Beat Estimates

Helmerich & Payne, Inc. HP reported a fiscal third-quarter 2025 adjusted net income of 22 cents per share, which beat the Zacks Consensus Estimate of 20 cents.  However, the bottom line decreased considerably from the year-ago quarter’s reported figure of 92 cents. This was due to a weakness in the company's International Solutions segment.

Operating revenues of $1 billion beat the Zacks Consensus Estimate by $42 million. In particular, sales from Drilling Services beat the consensus mark by 3.4%. Moreover, the figure increased 49.1% from the year-ago quarter’s level.

Helmerich & Payne, Inc. Price, Consensus and EPS Surprise

Helmerich & Payne, Inc. price-consensus-eps-surprise-chart | Helmerich & Payne, Inc. Quote

The company distributed approximately $25 million to shareholders as part of its ongoing dividend program.

As of the end of July, the company repaid $120 million on its existing $400 million term loan, which was originally funded at the close of the acquisition. The company expects to repay an additional $200 million by the end of calendar year 2025, up from the prior expectation of $175 million.

This was the first quarter to include the full impact of the acquisition of KCA Deutag (KCAD). During the quarter, the company made substantial headway toward achieving its goal of realizing $50-$75 million in cost synergies from the KCAD transaction, having already identified about $50 million to date, with further gains anticipated.

HP’s Segmental Performance

North America Solutions: Operating revenues of $592.2 million were down 4.5% year over year on lower activity levels, with 141 average active rigs. The top line beat our projection of $527.6 million.

Operating profit totaled $157.6 million compared with $163.4 million in the prior-year period. However, the reported figure beat our estimate of $103.9 million.

International Solutions: Operating revenues of $265.8 million increased 455.1% from the year-ago quarter’s level of $47.9 million. However, the top line missed our projection of $318.1 million.

Operating loss reached $166.5 million compared unfavorably with the prior-year period loss of $2.7 million. This segment’s results include a one-time goodwill impairment loss of $128 million directly impacting its profitability. The figure also missed our projection of a profit of $8.4 million.

Offshore Solutions: Revenues of $161.8 million increased 494.4% from the year-ago quarter’s level of $27.2 million. Additionally, the top line beat our projection of $135 million.

Operating profit totaled $8.8 million compared with $5 million in the year-ago quarter.  The figure missed our estimate of $22.2 million.

HP’s Financial Position

In the reported quarter, this Zacks Rank #3 (hold) company spent $362.2 million on capital programs. As of June 30, 2025, the company had $166.1 million in cash and cash equivalents, while the long-term debt totaled $2.2 billion (debt-to-capitalization of 43.3%).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HP’s Guidance for Fiscal Q4 and 2025

The company expects direct margin for the North America Solutions segment to be between $230 million and $250 million during the fourth quarter of fiscal 2025. The average rig count is expected to range from approximately 138-144 contracted rigs.

For the International Solutions segment, direct margin is expected to be between $22 million and $32 million, excluding any foreign exchange gains or losses. The average rig count is predicted to be around 62-66 contracted rigs.

In the Offshore Solutions segment, direct margin is anticipated to be between $22 million and $30 million. The average number of management contracts and contracted platform rigs is expected to range from 30 to 35.

The company expects its other operations segment to contribute a direct margin of up to $3 million.

HP’s gross capital expenditures are expected to range from $380 million to $395 million for fiscal 2025, partially offset by about $45 million in proceeds from asset sales, including reimbursements for lost and damaged tubulars and the sale of used drilling equipment. Depreciation for the year is predicted to be approximately $595 million.

Research and development expenses are still expected to be roughly $32 million, and general and administrative expenses are anticipated to be approximately $280 million. Cash taxes to be paid in fiscal 2025 are expected to range from $190 million to $220 million. Interest expense for the fiscal fourth quarter is expected to be approximately $25 million.

Important Earnings at a Glance

While we have discussed HP’s third-quarter results in detail, let us take a look at three other key reports in this space.

Coterra Energy Inc. CTRA reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 43 cents. The bottom line also outperformed the year-ago quarter’s 37 cents. This was largely attributed to stronger-than-expected operational performance, particularly in oil and natural gas production volumes.

This oil and gas exploration and production firm’s operating revenues of $2 billion beat the Zacks Consensus Estimate of $1.7 billion. Moreover, the figure was outstandingly higher than the year-ago figure of $1.3 billion. This can be attributed to higher natural gas price realizations.

As of June 30, 2025, the company had $192 million in cash and cash equivalents with no debt outstanding under its $2 billion revolving credit facility. This resulted in the company’s total liquidity of about $2.2 billion. Coterra Energy had a long-term debt (net) of $4.2 billion as of the same date, indicating a debt-to-capitalization of 22.3%.

Imperial Oil Limited IMO reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

As of June 30, 2025, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

TC Energy Corporation TRP reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.

This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.

As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion. TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.

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This article originally published on Zacks Investment Research (zacks.com).

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